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Minneapolis and St. Paul commercial tax rates comfortable among nation’s largest CBDs

  • With Minneapolis’ heavy concentration of financial services it can be considered an alternative hub to major coastal cities like San Francisco, where the property tax environment is relatively more cost prohibitive on a dollar PSF basis. This is despite Minnesota having the ninth highest effective commercial tax rate for taxes payable in 2017.
  • While Minnesota’s commercial property tax rates are above average and have been for some time, residential and apartment property owners continue to benefit from some of the lowest property tax rates in the country. It is not uncommon for commercial property owners to subsidize residential property tax though, according to the Lincoln Institute’s 50 State Property Tax Comparison Study, 45 of 53 cities studied give preferential treatment to residential owners.
  • Minnesota also benefits from property tax exemptions from business personal property and inventory, utilized by industrial property owners for manufacturing machinery and equipment. These state exemptions permits industrial property owners effective tax rates that fall below national average.​

Source: JLL Research, Lincoln Institute, CoStar

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